29 January 2025 – The University of Cambridge Institute for Sustainability Leadership (CISL), in partnership with the global law firm DLA Piper, is launching Phase 2 of the Future of Boards research study to support company boards and investors to align business success with sustainability outcomes.

Amidst pressure from the US to move the focus of business and investment away from the consideration of sustainability risks and opportunities, evidence facing us every day tells a different story and requires a new model for growth. The board as custodian of the interests of the company and its stakeholders must consider both the short and the long-term, albeit recognising the impact of country specific legislation. This requires companies to integrate sustainability risks and opportunities into core strategy and decision making. We urge boards and investors to activate this change and engage with legislators to influence enabling market conditions to support it.

The insights from our research help guide boards and investors to do this.

Download The Future of Boards: The Rise and Influence of Investor Stewardship, Business Briefing

Download The Future of Boards: The Rise and Influence of Investor Stewardship, Technical Report

Boards face growing scrutiny as long-term investors adopt proactive stewardship, prioritising sustainability over short-term gains. This shift compels boards to expand oversight and lead in driving sustainable value creation, ensuring businesses are future-ready and investments both deliver value and foster stable, resilient, and long-term wellbeing for people and the planet. Effective governance must advocate for structural market changes, ensuring that sustainability is rewarded while unsustainable activities become commercially unviable. 

The business briefing and technical report from Phase 2 build on our earlier research, offering a detailed examination of the evolving dynamics between boards and asset managers. It explores key drivers, enablers, and barriers shaping these relationships and provides actionable insights to navigate this rapidly changing landscape. Leveraging analysis of 40 major asset managers across America, Europe, Asia, Africa and Australia, the report highlights how stewardship practices can influence corporate governance and sustainability outcomes.

Two key findings from the report suggest that:

• Private engagement with investee companies has emerged as the preferred method for asset managers to influence corporate decisions.
• Large asset managers increasingly recognise that company-specific risks are compounding into systemic risks.

Key questions for boards and asset managers

The report offers two sets of practical questions—one designed for boards and the other for asset managers— aimed at fostering an introspective reflection on the status quo. These tools are designed to stimulate constructive dialogue around the governance practices needed to align corporate success with long-term sustainability goals.

Download The Future of Boards: From box-ticking to sustainable value creation: The use of relevant impact data and wider information in strategic decision-making, Executive Summary

Download The Future of Boards: From box-ticking to sustainable value creation: The use of relevant impact data and wider information in strategic decision-making, Full Report

Phase 1 of the Future of Boards research highlighted a prevalent “box-ticking” approach to sustainability data collection, focusing on compliance. A more strategic use of such data, combined with broader sustainability insights, enables boards to develop integrated strategies that drive long-term sustainable value for stakeholders, society, and the environment.

The alignment of business success with sustainability is driven by existential imperatives, not just moral arguments. Boards must address sustainability risks and opportunities for their companies to thrive. This report draws on insights from 12 food sector company boards, highlighting emerging good practices and challenges in accessing and using sustainability data for strategic decision-making to drive long-term success.

Two key findings suggest that boards leading the way:

• use sustainability impact data, and wider information, to inform their strategic direction and decision-making.
• do not reluctantly comply with sustainability-related reporting legislation, and other reporting requirements, but rather see them as useful tools to incorporate wider sustainability impacts into their thinking, beyond their core mission.

There is also growing recognition of the potential for AI and other technological advances to support boards by enabling a deeper understanding of sustainability data, stakeholder needs, and future scenarios.

As part of this research, CISL also collaborated with the UK’s Institute of Directors to explore boards’ approach to using sustainability information. Among the key results of a survey conducted with 486 of their executive board members, whilst 61.5% believed that the integration of sustainability risks and opportunities is essential to the delivery of their company’s profitability, 63.8% expressed lack of awareness of their business nature-related impacts and dependencies.

Key questions for boards

The report distils its insights into 20 key questions to help boards evaluate their thinking and practices. These questions empower boards to lead their companies, shape supportive government policies, and influence markets, driving progress toward a more sustainable future.

Authors and Acknowledgements

The Rise and Influence of Investor Stewardship

Lead Author/Researcher: The lead author and researcher of this report is Dan Mocanu, with support from Gillian Secrett and Dr Livia Ventura.

CISL Future of Boards Research Team (in alphabetical order): Dr Louise Drake, Bianca Drotleff, Fauzan Gani, Dan Mocanu, Aileen Noonan, Gillian Secrett (Lead), Dr Livia Ventura, Andrea Westall.

The authors are grateful for the contributions of Dr Nina Seega, Eliot Whittington, Laura Cochrane-Davies, Elizabeth Clark (CISL); Jean-Pierre Douglas-Henry, Alex Tamlyn, Kelly Sporn, Rachel Taylor (DLA Piper); Michael Sheren (CISL Fellow); Oguzhan Karakas (Cambridge Judge Business School); Jill Brosig (Harrison Street); Livio Gentilucci; Emilie Goodall (Fidelity International); Divya Seshamani (Greensphere Capital LLP); Peter van der Werf (Robeco); Manulife Investment Management and members of the Investment Leaders Group.

The authors extend their gratitude to all who contributed to this research through interviews including those who chose to remain anonymous. Thank you to members of the Investment Leaders Group (ILG) and those who agreed to be named, Jill Brosig (Harrison Street); Livio Gentilucci; Emilie Goodall (Fidelity International); Divya Seshamani (Greensphere Capital LLP); Peter van der Werf (Robeco); Manulife Investment Management and members of the Investment Leaders Group.

From box-ticking to sustainable value creation: The use of relevant impact data and wider information in strategic decision-making

Lead Author/Researchers: The lead author and researcher of this report is Andrea Westall, with support from Dr Louise Drake, Gillian Secrett.

CISL Future of Boards Research Team (in alphabetical order): Dr Louise Drake, Bianca Drotleff, Dan Mocanu, Aileen Noonan, Gillian Secrett (Lead), Dr Livia Ventura, Andrea Westall.

The authors are grateful for the contributions of Richard Calland, Eliot Whittington, Laura Cochrane-Davies (CISL); Jean-Pierre Douglas-Henry, Alex Tamlyn, Kelly Sporn, Rachel Taylor (DLA Piper); Roger Barker, Sasha Trapani, Emma Rowland and Alexandra Hall-Chen (Institute of Directors); Pia Heidenmark Cook; Emily Farnworth (Hughes Hall, University of Cambridge); Louise Gatenby (The Good Board); Maria Hjorth; Dr Victoria Hurth; Paul Lee; Patrick O’Sullivan; Michael Sheren (CISL Fellow); Susan Stenson; Jacqueline Yeats (University of Cape Town). We especially thank participants from EduEco+, Energy Systems Catapult, Jones Food Company, Scottish Water, Seafresh and Tony’s Chocolonely.

The authors extend their gratitude to all who contributed to this research through interviews, survey responses and roundtable discussions, including the UK’s Institute of Directors and those who chose to remain anonymous. We especially thank participants from EduEco+, Energy Systems Catapult, Jones Food Company, Scottish Water, Seafresh and Tony’s Chocolonely.

Citing these reports

University of Cambridge Institute for Sustainability Leadership (CISL). (2024). The Rise and Influence of Investor Stewardship, Business Briefing.

University of Cambridge Institute for Sustainability Leadership (CISL). (2024). The Rise and Influence of Investor Stewardship, Technical Report.

University of Cambridge Institute for Sustainability Leadership (CISL). (2024). From box-ticking to sustainable value creation: The use of relevant impact data and wider information in strategic decision-making, Executive Summary.

University of Cambridge Institute for Sustainability Leadership (CISL). (2024). From box-ticking to sustainable value creation: The use of relevant impact data and wider information in strategic decision-making, Technical Report.